Iran to remove four zeros from its national currency

TEHRAN,— Iran has approved a plan to redenominate its currency by removing four zeros from the rial, a step aimed at easing daily transactions but not expected to address underlying economic problems.

State television said Sunday that parliament approved the bill after a long review process and after objections from the Guardian Council were resolved.

The Central Bank will have two years to prepare for the change, followed by a three-year phase when both old and new notes will circulate together.

At present, one U.S. dollar is equal to about 1,150,000 rials in free market trading, according to bonbast.com. Under the new system, the same rate would be expressed as 115 new rials.

High inflation, estimated above 35 percent annually, has battered the currency and complicated daily life. Handling large numbers has become difficult in accounting, trade and household budgets.

Shamsoldin Hossein, who chairs parliament’s economic commission, said on state TV that the change would “make transactions and calculations easier.” He stressed that the rial will remain Iran’s official currency and that the process will take several years.

Economists pointed out the reform does not alter the actual value of money. Prices, wages and exchange rates will all be re-scaled, meaning purchasing power remains the same. “This is a bookkeeping adjustment, not an economic cure,” they said.

Criticism also surfaced among lawmakers. Hossein Samsami, a parliament member, told the Iranian Students News Agency that “deleting four zeros does not restore the prestige of a currency. Only strengthening the real value can do that.”

Iran’s central bank originally proposed the move in early 2019, state news agency IRNA reported.

Several countries in recent decades have adopted similar policies when confronted with hyperinflation. Venezuela, for instance, has repeatedly redenominated its bolivar, though inflation has persisted.

In August 2025, Syria announced plans to introduce new banknotes that will remove two zeros from the national currency.

The move is aimed at simplifying transactions and restoring some public confidence in the pound (lira), which has seen a sharp decline in value.

(With files from Reuters | Agencies)